Craft brewers in B.C. ask province to reform

With more craft breweries closing their doors because of rising costs, the BC Craft Brewers Guild is turning to the provincial government to overhaul its markup system for small businesses.

Ken Beattie, Executive Director at the Craft Brewers Guild of BC, says that economic uncertainty, the fallout from the COVID-19 pandemic, and rising rent is causing additional hardship.

“The cost of doing business in this sector for us is really becoming prohibitive,” Beattie said.

He notes that two breweries have announced closures in the last week alone in the Lower Mainland, among others, House of Funk in North Vancouver.

“This is now the 22nd brewery that has closed, and there is another one closing this weekend in New Westminster.”

Representatives of the craft brewing industry are meeting with B.C.’s Minister of Agriculture and Food, Lana Popham, this week.

They hope the minister will change how B.C. taxes and marks up local craft beer, especially during a time when the government wants consumers to buy Canadian.

All this would serve as the lifeline the industry needs right now.

“Ontario, Saskatchewan, and Alberta have all changed their markup in order to keep locally owned and operated businesses in business,” Beattie explained.

Under current laws, breweries must pay a markup on the product they want to sell at provincial liquor stores.

Additionally, there is a production cap: breweries that produce more beer than they are allowed in a year are subject to hefty financial penalties.

Beattie says B.C.’s craft brewing industry is special, but it needs help to survive.

“The cost of doing nothing will be a continuation of the erosion of bars and breweries.”

He says that breweries are gathering places that create jobs, along with supporting other sectors like artists and musicians.

“You know that is more than just a business. That is a community meeting place.”

1130 NewsRadio has reached out to Popham’s office for comments.

With files from Srushti Gangdev